Hot on the heels of 2019’s remarkable run of pub sales, Sydney’s historic Fitzroy Hotel has hit the market with price expectations of around $6 million.
The distinctive pink-hued pub affectionately known as “The Fitz” is located on a 1,319sq m site in Windsor’s commercial precinct and is being sold through an expressions of interest campaign.
The Fitzroy Hotel listing comes in the wake of sales of nearby pub assets including RG McGee’s ($6.5 million), the Royal Hotel ($18 million) and the Clarendon Tavern ($6 million).
HTL Property director Sam Handy, who will steer the sale along with Blake Edwards, said recent nearby investments by experienced hoteliers including Ashton Waugh and Peter Wynne were further indications of continued confidence in the area’s viability.
“There are very few entry-level large format Western Sydney freeholds at this price point, which exhibit such strong core investment fundamentals, as well as offering such clear and demonstrable upside levers which can be easily accessed via deployment of strategic capex,” Handy said.
The listing comes on the back of a bumper year for the national hotel market in terms of the consolidated transactional value, with transactions including the sale of the the Raby Tavern at $35 million, the St George Tavern at $47 million and the Belmore Hotel at $50 million in eight weeks alone; and the high-profile sale of Byron Bay’s Beach Hotel for $100 million.
The NSW pub sector alone saw $860 million worth of assets change hands across 66 transactions last financial year, and pubs in metropolitan Sydney accounted for more than half of all hotel sales by value, around $589 million.
Big gaming hotels proved especially popular in 2019, with Newcastle’s Kent Hotel selling for a reported $25 million—a price record for the city, and the Allawah hotel, which sold to pub baron Justin Hemmes for $34 million.
And with the proposed off-market sale last week of freehold interests for both Sydney’s Gregory Hills Hotel, and Brisbane’s Acacia Ridge Hotel on a sale and leaseback basis to listed property trust Hotel Property Investments, HTL managing director Andrew Joliffe believes investors’ thirst for the market is far from quenched.
“Close to $1.5bn worth of transactions were facilitated last year, and our firm has closed $200m worth of sales nationally well inside the first two months of the calendar year alone, in what is traditionally considered the more modest of the four trading quarters,” Jolliffe said.
The expressions of interest campaign for the Fitzroy Hotel closes on 26 March.